Family remittances to Latin America and the Caribbean will increase by 4.5% to 4.7% in 2026, down from 7% in 2025. This report highlights three key issues related to recent growth: first, the number of transactions is down 1% relative to 2025. Second, the average amount remitted is growing much more slowly and shows no signs of increasing in the short term. Third, digital origination is growing, partly because of increased competition and the effect of the recently implemented 1% tax on cash transfers.
With these trends likely to continue, remittances in 2027 may grow by 2%. The slowdown is expected to hit Central American countries harder, as they depend more on remittances and have fewer economic alternatives.
Key Findings:
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Remittances to Latin America and the Caribbean will reach close to $190 billion in 2026
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They will grow an estimated 4.7%
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The growth is shaped by a combination of factors and dynamics:
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Declining person-to-person transfers by 1%
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Increased, albeit slower than in 2025, average remitted at 5%
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Higher use of digital transactions at 61% of all flows from the U.S.
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Given the current migration and deportation climate and migrant economic difficulties, remittances may slow to 2% in 2027
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The analysis in this report includes five tables and seven charts containing detailed data characterizing and analyzing these patterns
